The Abu Dhabi National Oil Company (ADNOC) and China’s Wanhua Chemical have signed a partnership framework agreement and JV agreement that has a potential worth of USD 12 billion.

The agreement will entail cooperation in the downstream sector, including in the field of LPG shipping.

The shipping JV will cover the operation of two very large gas carriers, according to a Reuters report. The deal builds on an earlier LPG JV the two sides signed in February this year.

As explained by ADNOC at the time, the agreement is part of ADNOC’s ‘2030 smart growth strategy’, through which it would increase its oil production capacity to 4 million barrels per day (mmbpd) by the end of 2020 and 5mmbpd by 2030.

Wanhua Chemical is a global polyurethanes producer with five manufacturing bases worldwide.

Yesterday, in the presence of H.H. Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, we signed a Partnership Framework Agreement and JV agreement with Wanhua Chemical. pic.twitter.com/TnUttfIRJd